Silver Price Analysis – Silver Jumps into the Weekend on Short Covering?

Silver Technical Analysis

Silver initially plunged during the trading session on Thursday, but we have seen a turnaround, and it does look like we are going to see a bit of a bounce back. And it does make sense because the $60 level has been crucial for some time. Bouncing from here opens up the possibility of a move to the 200-day EMA and a resistance barrier for the bulls in this market.

I think you have to be very careful with your position size. It does look a little oversold, so I think maybe a little bit of a bounce over the next couple of days makes some sense. But if we give up the $60 level to the downside, that would be catastrophic. That probably opens up $50 as a potential target at this point.

Technical Analysis and Market Outlook

I begin to question now whether or not we are in the midst of trying to expand the range, possibly down to the $60 level, with the $90 level above being the ceiling. This is a large range and therefore could offer a lot of opportunities. The demand for silver is much higher than the supply, which opens up the possibility of value being chased in the silver market eventually.

This will all come down to risk appetite and interest rates. Interest rates in America continue to be a major driver, so keep an eye on the bond market. If yields drop, silver should bounce, but if they spike, we could see further pressure on silver and other metals in general.

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